Bitcoin jumped past $125,000 today, nearing its new all-time high as macroeconomic uncertainty and mounting political tensions in Washington pushed investors toward alternative assets.
The world’s largest cryptocurrency climbed more than 13% over the past week, rebounding from about $109,000 at the end of September to touch $125,750 over the weekend, according to Bitbio data.
At the time of writing, Bitcoin is trading at $125,870.
The move comes as people expect the Federal Reserve to cut interest rates later this month, which could further fuel a rally in non-yielding and risk-sensitive assets.
The ongoing U.S. government shutdown is adding another tailwind to Bitcoin’s climb. The budget standoff, now in its second week, has deepened concerns about fiscal dysfunction and the long-term credibility of the dollar.
Analysts like Geoffrey Kendrick, head of digital assets at Standard Chartered, believe that Bitcoin’s role as a safe haven is being amplified by Washington’s gridlock. Kendrick believes that Bitcoin could reach $135,000 in the near term and potentially $200,000 by year’s end if current conditions persist.
The rally also aligns with Bitcoin’s historical “Uptober” trend — a pattern of strong October gains that often set the tone for the final quarter. Since 2015, Bitcoin has averaged a 58% increase in the fourth quarter, the best performance of any three-month period.
Institutional demand appears to be driving much of the current momentum, with inflows into spot Bitcoin ETFs and custodial platforms signaling renewed appetite from professional investors.
Bitcoin and gold continues to run
While Bitcoin captured headlines, gold extended its record-breaking run on Monday, surging to $3,944.81 per ounce in Asian trading. The metal has risen nearly 50% this year, buoyed by central bank buying, dollar weakness, and expectations of further Fed easing.
Both UBS and Commerzbank recently lifted their 2025–2026 forecasts, citing persistent geopolitical risks and strong demand from reserve managers.
The yen, meanwhile, continued to weaken following Japan’s recent election, which brought to power a government seen as favoring looser fiscal policy. The dollar traded above 145 yen, contributing to additional volatility across currency markets.
With Bitcoin, gold, and even traditional safe havens moving sharply higher, investors appear to be positioning for a prolonged period of policy uncertainty and dollar weakness. Whether this momentum can last, analysts say, will depend on how quickly Washington resolves its fiscal impasse — and how aggressively the Fed moves to cut rates in the coming weeks.
At press time, Bitcoin was trading near $124,585, up more than 80% year to date, according to Bitcoin Magazine Pro data.
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